The software industry is in the midst of a multi-year secular shift toward software as a service (SaaS). Innovation in cloud infrastructure and networking technologies over the last 10-15 years has enabled an increasing number of new and innovative SaaS companies to come to market. In our view, this shift from on-premise license models to SaaS could last for many years to come.
Many investors are worried about the de-globalization of the world. While many metrics do suggest that global production and trade of tangible items are slowing, the trade of digital information and code (bits) is showing no signs of cooling down.
As Labor Day approaches, we see a trend in wage growth that bodes well for the economy, but poses an obstacle for businesses trying to manage wage cost pressures.
Reducing greenhouse gas emissions is believed to be critical to keeping the rise in global temperatures this century under 2°C (3.6°F). What would need to happen for the world to reach that goal?
When it comes to framing risk, especially in a recessionary environment, it is important to understand history. Gauging expected earnings in a difficult economic environment is key to understanding risk in investments.
U.S. equity price-to-earnings (P/E) multiples are higher than their historical average. However, an examination of the changing nature of business models suggests that valuations may be more attractive than they appear.
The Federal Reserve meets July 30-31 to discuss possible monetary policy actions. Expectations are for the first rate cut since December 2008. But what might this mean for the economy and investors?
Streaming video products take multiple forms: short internet clips, subscription-based services, such as Netflix, traditional content providers and gaming software. Today approximately 200 streaming video services exist but the top four companies dominate the market with the number one provider garnering a 70% share of homes. In fact, many homeowners stream content from multiple sources.
The total dollar amount of debt held by U.S. households and corporations recently hit a record high. Some are fearful this will lead to a deep recession. While the absolute numbers are high, what may matter most is the ability to repay the debt—the debt service level.
This year we celebrate the 243rd birthday of the U.S. Since its founding the U.S. has been renowned for its democracy and capitalist system that embraces change and innovation. These factors have been the catalysts of the U.S.’s robust stock market, which outstrips that of any other nation worldwide.
Your genes determine more than your eye color or your physique. The propensity of you or your offspring to develop certain diseases is highly influenced by genetics. The good news is research into the genome, your complete set of genes, has started to drive huge medical breakthroughs and new drugs are regularly approved for people with rare genetic conditions. As a result investment opportunities up and down the genomic food chain are plentiful.
Moore’s Law states that the speed and ability of computers doubles every two years as the number of transistors on a microchip increases. It has been the driving force of the global digital revolution. Now a different version of Moore’s Law is set to usher in even larger, more powerful changes in technology and living standards.
Economists and market pundits have clear beliefs regarding how the economy works. In the view of many, growth peaks when the economy is fully utilizing resources. For example, historically labor force employment increases lead to wage growth, resulting in higher inflation and ultimately higher interest rates. This leads to a slowing economy, and the cycle begins anew. Interestingly, today’s U.S. economy is not working in this fashion.
When it comes to the stock market, sentiment can change quickly—sometimes regardless of fundamentals—and affect performance. The Health Care sector has historically delivered attractive investment opportunities but may be succumbing to negative sentiment today. Savvy investors should consider the current opportunity in Health Care.
The Internet of Things (IoT) is quickly taking shape all around us. It’s important that investors understand it so they can recognize its investing implications and opportunities.
Often in economics breaking down a whole into its components tells a unique story. While overall GDP appears to be at or above potential, some of its components suggest continued growth.
One metric that tracks potential investment losses is the downside capture ratio, which indicates how investments fare in a down market relative to a benchmark. Like all performance metrics, it is one input in a broader assessment.
As we prepare to celebrate Mother’s Day, the first quarter earnings season is wrapping up and on the surface it may not seem like one that would make mom proud. However, there is reason to be optimistic that earnings growth will bounce back, providing a supportive backdrop for equities.
Cutting-edge human resources (HR) departments are seeking to provide more services and benefits to their employee base by utilizing new technologies. In particular, cloud computing allows HR departments to streamline their workflow and conduct business more effectively. Investors should look at the technology companies enabling these changes.
Combining one’s passion with one’s investment strategy may get some investors excited but it hasn’t turned out to be the most lucrative approach in recent years, even for the very wealthy who make up the predominant investors in collectibles. While sometimes amassing art or vintage cars, for example, can reap valuable gains, investing in equities during the past 10 years has proven substantially more profitable.
Digital transformation has significantly impacted the industrials sector, where companies are using software, data and artificial intelligence (AI) to monitor and optimize their assets with the Internet of Things (IoT).
When trying to understand the probability of a recession, it can be challenging to conclude much from news headlines or media stories. However, the Conference Board Leading Economic Index (LEI) has been a reliable indicator of future economic growth and its current reading implies that a recession is not imminent.
The number of overweight people worldwide is a growing trend, having tripled since 1975 to nearly 2 billion people, 13% of whom are considered obese. There may be a benefit to investing in health care companies that are developing products, procedures, or services to treat the complications associated with people who are overweight.
Driving assistance technology, such as safety features, is saving lives and reducing costs associated with accidents. It’s also an important step in the high stakes race to develop autonomous vehicles. As firms aggressively work to develop self-driving vehicles, they are creating new investment opportunities among companies that provide sensors, computing platforms, semiconductors and software.
Currently it appears that smaller capitalization stocks may be positioned for higher returns than their larger counterparts. As fundamentals and valuation both seem to be aligned, small caps may be able to reverse a multiyear period of underperformance.
Choosing wisely is paramount when it comes to achieving optimal investment results. Behavioral psychology teaches us several important lessons on how investors’ minds operate. Although economics assumes humans behave rationally, relying too much on our own experience often prevents us from doing so. However, an important technique exists to help us make better decisions.
The bull market in U.S. equities could celebrate its 10th birthday on March 9th, 2019. Here we look back at how much ground this historic bull market has covered and look forward to potential continued expansion. A variety of economic indicators, including the Institute of Supply Management’s survey of new orders, point to potential economic growth that could support equities.
What is an economic moat? It’s a representation of a company’s sustainable competitive advantage, which matters because wide moat companies, whose competitive advantages are expected to be durable over the long term, have historically outperformed.
Markets have been volatile in recent months but Growth has beaten Value over several significant measurable periods. One key factor may be that accounting standards have failed to keep pace with the changing economy.
Innovation in the health care sector is accelerating due in part to a more accommodating regulatory environment for new approaches to medical treatment. Tracking which companies are participating in novel drug manufacturing may be important for health care investors.
Many experts pay close attention to the great wealth of the Baby Boomers but Gen X and Millennials have actually surpassed the Baby Boomers in their share of disposable income, which is expected to rise strikingly in coming years.
Goodbye, peak growth. Hello, equity gains? It may not make sense at first blush but slowing economic growth can, and often does, coincide with positive equity returns.
The mobile boom in China has driven innovation and today China possesses a host of new internet creations that lack U.S. equivalents. As a result, there may be a significant long-term opportunity in China.
